RRC: Over $261 million invested in alternate fuels

Published 7:15 pm, Saturday, May 30, 2015

CNG fueling pump available to the public at two Stripes Convenience Stores in Midland, one at 3200 E. Highway 158 and the other at Big Spring and Loop 250.

CNG fueling pump available to the public at two Stripes Convenience Stores in Midland, one at 3200 E. Highway 158 and the other at Big Spring and Loop 250.

Photo: Tim Fischer

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CNG fueling pump available to the public at two Stripes Convenience Stores in Midland, one at 3200 E. Highway 158 and the other at Big Spring and Loop 250. Tim Fischer\Reporter-Telegram

CNG fueling pump available to the public at two Stripes Convenience Stores in Midland, one at 3200 E. Highway 158 and the other at Big Spring and Loop 250. Tim Fischer\Reporter-Telegram

Photo: Tim Fischer

RRC: Over $261 million invested in alternate fuels

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Gasoline’s traditional grip on fueling transportation is easing as alternative fuels such as natural gas and compressed natural gas continue to be embraced.

Railroad Commissioner David Porter said that CNG and liquefied natural gas are increasingly being used in Texas for transportation, high-horsepower engines and oilfield equipment, while state leaders, fleet managers and station developers are continuing to invest in Texas natural gas for transportation.

CNG fueling stations can be found at two Stripes convenience stores in Midland, and Freedom CNG expects to open a Midland site this fall.

The local facilities are just part of the $261 million the Railroad Commission estimates has been invested in natural gas vehicles and fueling stations in the Lone Star State in the past two years.

The effort to promote natural gas as a transportation fuel has drawn the support of Porter, who launched his Texas Natural Gas Initiative in 2013.

In announcing the investment figures, Porter said in a statement, “The market is working in natural gas’ favor, and these new figures demonstrate clear and continued market growth. Private capital represents $239 million of the total invested. This indicates investors’ confidence in natural gas as a transportation solution.”

John Athon, who oversees business development and operations for Freedom CNG, said the development of natural gas as a transportation fuel has a widespread impact.

“There is several generations worth of natural gas under the Texas soil, and tapping it is important to, first, helping decrease our ongoing dependence on foreign oil, second, cleaning up the air quality in Texas and third, helping both public and private fleets save money when fueling their vehicles,” he said by email.

Porter echoed those sentiments: “I always tell people using natural gas engine fuel is a ‘Win. Win. Win.’ It’s abundant. It’s clean-burning, and it’s affordable. More importantly though: Natural gas is a Texas fuel. Using more natural gas at home means more jobs and more revenue for our state and national economies.

“It also means better energy security,” he said. “By using more natural gas in markets that rely on traditional fuels like diesel, we can keep reducing our dependence on foreign energy sources. Instead of sending billions of dollars a year to foreign sources to get fuel for our vehicles, let’s invest that money at home and free ourselves from OPEC once and for all.”

“Watching the CNG fueling infrastructure grow from 30 or so public stations in 2012 to over 110 (projected) this year has been really exciting for our industry,” Athon said. “One of the reasons for this massive growth is, in a large part, due to the Texas Railroad Commission and the Texas Commission for Environmental Quality commitment to natural gas vehicles and fueling stations.”

James Beauchamp, president of the Midland-Odessa Transportation Alliance, said by email he thinks the addition of natural gas vehicles and fueling stations is “super.”

“There are a lot of us that remember the precursor to natural gas and CNG, which was propane. These fuels burn clean and can often reduce normal wear on engines. That being said, a lot of work goes into the fueling stations, so it takes time, and without them, there is no benefit to convert, especially if there is no place to fill up. It lays out sort of a chicken-and-egg scenario,” he said.

Porter believes that scenario is being addressed.

“The figures also demonstrate a close balance — $108 million for natural gas vehicles and $153 million for fueling stations — which means this robust market growth is viable and long-term, because we are addressing both sides of the old ‘chicken-and-egg’' problem,” Porter said.

Beauchamp sounded a note of caution about the drive to use alternate transportation fuels, particularly natural gas, CNG and LNG. “There are some efforts underway to require conversion in areas that aren’t subject to air quality issues, which I understand, but worry about, due to the cost of conversion, which is very high,” he said.

“I know a lot of groups say if it is incorporated into new fleet/vehicle purchases it doesn’t result in any additional costs, but from what I have seen, natural gas and CNG vehicles are significantly higher in initial cost. Of course, the real issue is: Does that additional cost up front result in higher long-term savings? With current gas prices, that is probably a pretty good case to make, but if you look at gas prices from a few years back, probably not as much.

“There are many like T. Boone Pickens and others who talk about this as the wave of the future, but how far away is that future? We are seeing developments today, such as the fueling stations, but as far as when we see it on a larger or more widespread basis, I couldn’t begin to predict,” Beauchamp said.